List all types of taxable income.
Wages, salaries, tips, interest, dividends, capital gains, business income, rental income, unemployment, gambling winnings, alimony (pre-2019), jury duty, bartering income.
List common nontaxable income.
Gifts, inheritances, child support, life insurance proceeds, municipal bond interest, welfare benefits, workers’ compensation.
What is the kiddie tax?
Unearned income of a child taxed at parent’s marginal tax rate.
What is gross income?
All income from whatever source derived, unless excluded.
Tests for Head of Household qualification?
Unmarried, paid >50% of home cost, qualifying person lived with taxpayer >6 months (exceptions for parents).
What are the rules for dependent care credit?
Child under 13 or disabled dependent; expenses must be work-related; credit % based on AGI.
What education expenses qualify for AOTC?
Tuition, required fees, course materials; first 4 years of post-secondary education.
What is the limit on educator expense deduction?
Up to the inflation-adjusted amount per eligible educator.
Rules for IRA deductibility?
Deductible depends on coverage by workplace plan and AGI limits.
Capital loss deduction limit?
Up to $3,000 ($1,500 MFS) against ordinary income.
Wash sale rule?
Loss disallowed if substantially identical stock purchased within 30 days before/after sale.
Basis of inherited property?
Generally stepped-up to FMV on date of death.
Basis of gifted property?
Carryover basis unless FMV < donor’s basis; dual-basis rules apply.
What is the passive activity loss rule?
Passive losses only offset passive income unless exception applies.
Material participation tests?
500 hours, substantially all participation, 100 hours & more than anyone else, etc.
What is NIIT?
Net Investment Income Tax—3.8% on investment income above threshold.
What is the AMT exemption?
Inflation-adjusted; phased out at higher income levels.
What expenses are disallowed for AMT?
State/local taxes, miscellaneous itemized deductions, incentive stock option adjustments.
Standard deduction rule for dependents?
Greater of $1,250 or earned income + $400 (capped at regular SD).
What triggers filing requirement?
Income thresholds by filing status; self-employment >$400; special situations.
What items are reported separately on Schedule K-1 for partnerships?
Guaranteed payments, interest income, dividends, capital gains, §179, charitable contributions.
What items affect outside basis?
Contributions, distributions, income, losses, liabilities.
What is recourse vs nonrecourse debt?
Recourse: partner personally liable. Nonrecourse: secured by property only.
Self-employment tax for partners?
Partners pay SE tax on guaranteed payments and distributive share of ordinary income.
